Bona fide purchaser for value defence available to unsecured creditors: Federal Court of Appeal clarifies the scope of a deemed trust

Sophie Cannon, Jess Reid and William Skelly of MLT Aikins summarize a recent case where the Federal Court of Appeal held that unsecured creditors who receive payment in good faith and without notice of unremitted source deductions may rely on the bona fide purchaser for value defence against the Crown’s deemed trust claim under the Income Tax Act.

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